Tech Industry Expands Into More Affordable Markets

hamilton-zanze November 23, 2015

Northern California contains nine of the top 15 most expensive tech submarkets, pushing tech firms to seek metro areas with cheaper rents and plentiful talent. Most of these companies continue to maintain Bay Area headquarters but will also establish larger staff in secondary markets with more affordable rents. In the past year, 34 tech companies have launched new locations across 19 markets, occupying more than 2.1 million square feet of office space. These growing markets are “not competing against Silicon Valley, they are competing to be more like Silicon Valley,” said Julia Georgules, director of U.S. office research for JLL.